Location: Madison County, ID | Metro: Fremont County, ID
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $890 |
| 1 Bedroom | $910 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,410 |
| 4 Bedrooms | $1,700 |
| 5 Bedrooms | $1,972 |
| 6 Bedrooms | $2,209 |
| 7 Bedrooms | $2,386 |
| 8 Bedrooms | $2,505 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,010 | $242,106 | 0.42% | F |
| 3BR | $1,410 | $358,613 | 0.39% | F |
| 4BR | $1,700 | $415,323 | 0.41% | F |
| 5BR | $1,972 | $506,219 | 0.39% | F |
U.S. Census Bureau data (2024)
The Section 8 analysis for ZIP code 83445 reveals a significant gap between the Fair Market Rent (FMR) set at $970 and the actual market rent of $798 per month based on Census ACS data. This gap amounts to $172, or approximately 17.6%, indicating that the FMR is higher than the prevailing market rent.
In such scenarios where FMR exceeds the market rent, properties in ZIP 83445 become attractive yield plays for landlords and small-portfolio investors. The discrepancy means that landlords can receive higher rents through Section 8 vouchers than they would from open-market tenants. Given that only 23.7% of residents are renters, there's a competitive edge for those who can secure voucher tenants. The median home value stands at $355,754, while the median household income is $68,012, suggesting that many residents might find it challenging to afford rental costs without assistance.
The higher FMR supports the financial viability of renting to voucher holders, offering a stable income stream and potentially lower vacancy rates compared to the open market. For investors, this ZIP code presents an opportunity to leverage government subsidies to achieve better rental yields. However, it's crucial to understand the administrative requirements and potential limitations associated with participating in the Section 8 program.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). Demographics from U.S. Census (2024).
About FMR: Fair Market Rent (FMR) is used to determine payment standards for the Section 8 Housing Choice Voucher program, initial renewal rents for some expiring project-based Section 8 contracts, and rent ceilings for HOME Investment Partnerships.